kial/coo/65/2020-21 request for proposal (rfp) for

of 13 Kannur International Airport Limited

CIN: U63033KL2009PLC025103 Registered Office: Kara-Peravoor, Mattannur, Kannur - 670702

Ph: (+91) 490 2481000, Website: www.kannurairport.aero

Kannur International Airport Limited

RFP No:-KIAL/COO/65/2020-21

Request for Proposal (RFP) for Selection of an Agency for

Setting up and Operating Shopping Arcade

at

Kannur International Airport

December 2020




DISCLAIMER

The information contained in this Request for Proposal document (the “RFP”) or subsequently

provided to Bidder(s), whether verbally or in documentary or any other form by or on behalf of

the Kannur International Airport Limited, hereinafter called“Kannur Airport”, or any of their

employees or advisors, is provided to Bidder(s) on the terms and conditions set out in this RFP

and such other terms and conditions subject to which such information is provided

This RFP is neither an agreement/offer nor an invitation by the Kannur Airport to the

prospective Bidders or any other person. The purpose of this RFP is to provide interested parties

with information that may be useful for them in making their financial offers pursuant to this

RFP (the “Bid”). This RFP includes statements, which reflect various assumptions and

assessments arrived at by the Kannur Airport in relation to the Project. Such assumptions,

assessments and statements do not purport to contain all the information that each Bidder may

require. This RFP may not be appropriate for all persons, and it is not possible for the Kannur

Airport, its employees or advisors to consider the investment objectives, financial situation and

particular needs of each party who reads or uses this RFP. The assumptions, assessments,

statements and information contained in this RFP may not be complete, accurate, adequate or

correct. Each Bidder shall therefore conduct its own investigations and analysis and shall check

the accuracy, adequacy, correctness, reliability and completeness of the assumptions,

assessments, statements and information contained in this RFP and obtain independent advice

from appropriate sources.

Information provided in this RFP to the Bidder(s) is on a wide range of matters, some of which

depends upon interpretation of law. The information given is not an exhaustive account of

statutory requirements and should not be regarded as a complete or authoritative statement of

law. The Kannur Airport accepts no responsibility for the accuracy or otherwise for any

interpretation or opinion on law expressed herein.

The Kannur Airport, its employees and advisors make no representation or warranty and shall

have no liability to any person, including any Bidder or Bidder under any law, statute, rules or

regulations or tort, principles or restitution or unjust enrichment or otherwise for any loss,

damages, cost or expense which may arise from or be incurred or suffered on account of

anything contained in this RFP or otherwise, including the accuracy, adequacy, correctness,

completeness or reliability of the RFP and any assessment, assumption, statement or

information contained therein or deemed to form part of this RFP or arising in any way in this

Bid Stage.




The Kannur Airport also accepts no liability of any nature whether resulting from negligence or

otherwise howsoever caused arising from reliance of any Bidder upon the statements contained

in this RFP.

Kannur Airport may in its absolute discretion, but without being under any obligation to do so,

update, amend or supplement the information, assessment or assumptions contained in this

RFP. Such changes if any shall be published in the website of Kannur International Airport Ltd.

(www.kannurairport.aero).

The issue of this RFP does not imply that the Kannur Airport is bound to select a Bidder or to

appoint the Selected Bidder as the case may be, for the Project and the Kannur Airport reserves

the right to reject all or any of the Bidders or Bids without assigning any reason whatsoever.

The Bidder shall bear all the costs associated with or relating to the preparation and submission

of its Bids including but not limited to preparation, copying, postage, delivery fees, expenses

associated with any demonstrations or presentations which may be required by the Authority or

any other costs incurred in connection with or relating to its Bid. All such costs and expenses

will remain with the Bidder and the Kannur Airport shall not be liable in any manner

whatsoever for the same or for any other costs or other expenses incurred by a Bidder in

preparation or submission of the Bid, regardless of the conduct or outcome of the Bidding

Process.

http://www.kannurairport.aero/




1. Introduction

Background and Project Information:

Kannur International Airport Limitedis a public limited company set up by the Government of

Kerala to build, own and operate Kannur International Airport. This is the fourth international

airport in Kerala.

The airport commenced operations on 9thDecember 2018 and handled 1.58 million passengers

and 15100 Aircraft Movements in Financial Year 2019-20. In the said Financial Year, four airlines

- Indigo, Go Air, Air India Express and Air India operated at Kannur International Airport.

The major passenger traffic in the region comprises emigrants flying predominantly to the

Middle East. Almost 50% of Kerala emigrants are from districts such as Kasaragod, Kannur,

Kozhikode, Wayanad and Malappuram. Thus, the catchment area for the airport comprises the

districts of Kannur, Kasaragod, Wayanad and other parts of North Kerala (Malappuram and

Kozhikode) and covers a broader region comprising Dakshin Kannada (Mangaluru region),

Coorg, Mysuru, Ooty, etc.

Kannur Airport has a vision to make the Airport one of the highest international standards with

emphasis on safety and security, functionality and flexibility, environmentally sustainable

practices, high level of service for the passengers, providing modern architecture and efficient

and environment-friendly operations.

Pursuant thereto, Kannur Airport is inviting proposals for the Selection and Appointment of an

Agency for Setting up and Operating Shopping Arcadeat Kannur International Airport.

Kannur Airport has earmarked space at 80 M (Basement) Level ofPassenger Terminal Building

for this purpose with a view to provide better facilities and services to the airport users.

2. Request for Proposal:

Kannur Airport intends to select a reputed and experienced agency for Setting up and Operating

a Shopping Arcadeat80 M (Basement) Level of Passenger Terminal Building at Kannur

International Airport as detailed in Annexure-I.

Accordingly, Kannur Airport is hereby inviting proposals from reputed, resourceful and

experienced agencies to submit their proposal for consideration and evaluation for Setting up




and Operating aShopping Arcadeat 80 M (Basement) Level of Passenger Terminal Building at

Kannur International Airport.

3. Scope of the Services / Facilities:

The selected Biddershall plan, develop, design, build, finance, operate, maintain and managea

Shopping Arcade (hereinafter called as the “Project”)in accordance with the Applicable Laws,

Good Industry Practices, and Set Up Plan approved by Kannur Airport, as well as arrangement

of requisite finance, goods/items, equipment, machinery, security, licences and other clearances

and permits as required at its own costs as set out in Annexure-I. If any services, functions or

responsibilities are not specifically described herein or in any other related document(s) which

are an inherent, necessary, ancillary and/ or customary part of the Services or are reasonably

required for proper performance of the Services in accordance with the RFP, they shall be

deemed to be included within the scope of services as if such services, functions or

responsibilities were specifically described in this RFP.

4. Key Terms and Conditions:

4.1 RFP Document Fee: The RFP documents can be downloaded from Kannur Airport‟s website

www.kannurairport.aero. Thebidder shall pay Kannur Airport a sum of INR 6,000/-(Rupees Six

Thousand Only inclusive of GST) (the "RFP Document Fee") as the cost of the RFP process

which is non-refundable. The Bidder shall deposit the RFP Document Fee by RTGS/NEFT to

Kannur Airports‟ Bank Account and the details of remittance should be attached along with the

Proposal.

Bank Account Details

Beneficiary Name : KANNUR INTERNATIONAL AIRPORT LIMITED Beneficiary Bank : SOUTH INDIAN BANK, MATTANNUR Account Number : 0782073000000001 RTGS / IFSC CODE : SIBL0000782

4.2 Area Available: Required space can be allotted to the selected bidder. Interested Bidder may

submit requirement of space while submitting the Proposal.

4.3 Concession Term: The Concession Term shall be valid for 7 years from the date of Letter of

Award. Subject to good performance and timely payment of all dues to the airport by the Selected




Bidder, the Kannur Airport may consider extension of the contract for another 3 years on terms

and conditions to be decided at the appropriate time.

4.4 Concession Fee:

The Concession Fee will consist of Space Rent for the Space allotted by Kannur Airport as well

as Revenue Share as described below:

a. The Space Rent (Non Air Conditioned) at Kannur Intentional Airport is Rs. 850/- per Sqm

per month (effective from 9thDecember 2020) plus applicable taxes with an annual

compounded escalation of 10% from subsequent years.

b. Kannur Airport desires interested bidders to quote the Space Rent they will pay per Sqm per

month. Space Rent is subject to an annual compounded escalation of 10% per annum.

c. In addition to the Space Rent, Kannur Airport expects that the interestedBidder will pay

7.5% of the Gross Revenue ("Revenue Share Percentage earned from all the sources") from

the Commercial Operation Datefor two years and thereafter it will increase by 2.5% year on

year for the remaining 5 years period. Bidders, however, may quote the percentage of revenue

share they will pay.

4.5 CAM and Utility Charges:

a. The selected Bidder shall pay “CAM Charges" from the commercial operations datefor

providing common infrastructure facilities and maintenance of common areas therein such

as lifts, staircase, passages, corridors, sewerage, lighting, information technology, other

analogous utilities etc. at the rate of Rs. 121/- per square meter per month on the allocated

area. CAM charges shall be subject to an annual compounded escalation of 10% per annum.

b. The selected Bidder shall also pay charges for electricity and water (on actuals) for the

allocated area as "Utility Charges" from the “Access Date”. Access Date means the date of

Handing-Over the site to the selected Bidder by Kannur Airport.

All the Applicable Taxes including GST shall be paid by the selected Bidderin addition to the

Space Rent, Revenue Share, CAM Charges and Utility Charges.




4.6 Security Deposits:

a. The selected Bidder shall pay interest free refundable Security Deposits equivalent to 12

months against the Concession Fee, CAM Charges and Utility Charges to Kannur Airport.

b. The selected Bidder shall deposit above cited Security Depositswithin 15 days from the date

of Letter of Award by RTGS/NEFT to Kannur Airports‟ Bank Account.

c. The Security Deposit against Space Rent and CAM Charges shall be increased in proportion

to the annual compoundedescalation of 10% and the increased Security Deposit amount shall

be paid at the beginning of each successive year.

d. The selected Bidder agrees and acknowledges that Kannur Airport shall not be liable to pay

any interest on the Security Deposits.

4.7 Eligibility Criteria of Bidders:

For determining the eligibility of Bidders for their technical qualification, the following shall

apply:

a. The Bidder for qualification may be a single entity or a group of entities/existing joint

venture, coming together to implement the Project (“Consortium”). However, no Bidder

applying individually or as a Member, as the case may be, can be a member of another Bidder.

The term „Bidder‟ used herein would apply to both a single entity and a Consortium.

b. A Bidder may be a private entity, government owned entity or any combination of them with

a formal intent to enter into an agreement to form a Consortium.

4.7.1 Eligibility Criteria – Technical:

a. Kannur Airport expects that Bidder shall be in the business of super market / departmental

stores / hyper market and should have prior experience in operating and

managing“Project”in India in the past three financial years.

b. It is desirable that the Bidder should have an average turnover of Rs. 2 Cr (Rupees Two

Crore only) in the last 3 Financial Years.




c. It is desirable that the companies/firms, who prima facie have technical and financial

capability, may submit their Proposal.

4.7.2 Eligibility Criteria – Financial:

a. It is desirable that the Bidder should have an average annual Turnover of Rs. 2/- Cr (Rupees

Two Crore only) in the last 3 Financial Years, and

b. Positive Net Worth as on March 31, 2020 in accordance with the audited financial

statements. For this purpose “Net Worth” means paid up share capital plus free reserves,

excluding revaluation reserve, less accumulated losses and miscellaneous expenses yet to be

written off, if any.

4.8 Submission of Business Plan:

The interested bidder shall submit a detailed Business Plan for entire term showing Investment,

Development Plan, Revenue Projections, Breakeven, etc.

4.9 Construction Period:

The facility is required to be ready and operational in three monthsfrom the date of issue of

Letter of Award.

4.10 Real Time Data Sharing:

The Selected Bidder shall deploy (on its own cost)a state of the art technology framework in

accordance with applicable laws and best industry practices to ensure that the relevant sales

and other requested data is transferred to Kannur Airport on real time basis, starting from the

date of commencement of Shopping Arcade operations.

The Selected Bidder shall facilitate extraction of relevant transaction data automatically from

the source of transaction by Kannur Airport on a daily basis or at such other intervals, as

specified by Kannur Airport.

4.11 Condition on Employment of people from Evictee category:

The Selected Bidder shall endeavour to employ local personnel based on their qualifications and

shall further endeavour to give preference in employment to members of the evictee families,




(not more than one person from each family), whose houses have been acquired in establishing

the Airport as per the list of families provided by Kannur Airport to the Selected Bidder.

In addition, the Selected Bidder shall give priority in employing other local candidates, based on

their qualifications provided such employment shall be subject to qualification and selection

process adopted by the Selected Bidder for employment of personnel for various posts.

4.12 Timelines for Document Submission:

Schedule Timelines

Date of issue of RFP 2 December 2020

Last date for clarifications (if required) from Bidder(s) 8 December 2020, 1700 hrs

Pre Bid Meeting(through Video Conference) 11 December 2020, 1500 hrs Clarifications of Bidders‟ queries 18 December 2020, 1700 hrs

Presentation by interested Bidders 22 December 2020, 1100 hrs

Last date of submissions of Proposal 29 December 2020, 1700 hrs

4.13 Issuance of RFP Document:

Bidders shall download the RFP document from Kannur Airport website and submit the

Proposals along with the RFP Document Fee as set out in Clause 4.12 (Timelines) to Kannur

Airport through e-mail [email protected]. Corrigendum/amendment(s)/

notification(s) related to this RFP document will be published on the Kannur Airport website

www.kannurairport.aero. Kannur Airport shall not entertain any Correspondence / Proposal

from any other interested parties/ agencies after the last date of submission of RFP as set out

hereinabove.

5. Submission of Documents:

The Bidder has to submit valid documents related to Technical & Financial eligibilities as

mentioned in Clause 4.7 of this RFP along with details of remittance of RFP Document Fee and

Financial Bid as set out in Annexure II.

mailto:[email protected]

http://www.kannurairport.aero/




ANNEXURE – I

SCOPE OF WORK/ SERVICES

Kannur Airport is engaged in the business of operating and maintaining an international airport

at Kannur, Kerala („Kannur Airport‟).

Kannur Airport desires selected Bidder to develop aShopping Arcadeat 80 M (Basement) Level

of Passenger Terminal Building at Kannur International Airport.

The“Project” is envisaged to be a centre of attraction in the airport for full filling the day to day

shopping needs of airport users and local people residing nearby areas of the airport. It is

expected that the Selected Bidder shall make available all day to day use products at reasonable

price, without compromising quality. The proposed “Project” shall be comparable to leading

supermarkets/hypermarkets in the district with respect to availability of product variety,

customer experience, convenience, ease of shopping etc.

The Scope of Work is envisaged as below:

Kannur Airport will provide bare space to the selected Bidder for the “Project” in the

Basement Level of the Passenger Terminal Building at Kannur International Airport. The

interested Bidder shall submit the requirement of space in their proposal.

The works carried out by the Selected Bidder shall match with the aesthetics and general

features of the airport ensuring quality as per the International Standards. The finishing

schedule as well as details shall be submitted to Kannur Airport for approval. The

Selected Bidder shall be bound to incorporate the comments/suggestions put forward by

Kannur Airport at no cost.

Catering to the basic grocery/day to day household shopping requirements

should be the first motto of the Shopping Arcade. The basic household goods,

such ascereals, grocery, vegetables, spices etc shall be made available in

sufficient quality at all time of operation at the Shopping Arcade.

It is expected to offer large variety of goods to the customers at one place which leads to

large turnover and the customer is benefited on account to lesser price.




The selected Bidderis expected to be working with an appropriate banking partner so as

to give multiple payment options to the customers.

The selected Bidder is expected to implement appropriate processes along with

necessaryhardware and software systems to enhance customer experience.

It is envisaged that the selected Bidder shall make available regular goods/items

such as:

1) Agriculture Produce – Fruits, Vegetables, Spices, Nuts etc.

2) Bakery Products - Breads, Buns, Biscuits etc.

3) Dairy Products - Milk, Butter, Eggs, Yogurt etc.

4) Condiments – Olive Oil, Vinegar, Mayonnaise, Ketchup etc.

5) Canned Goods – Canned Marine Products, Vegetables, Fruits etc .

6) Pasta, Spaghetti etc.

7) Local Products

8) Cereals

9) Snack Foods

10) Meat and Meat Products

11) Sea Food products

12) Frozen Food – Mutton, Chicken, Fish, Pizza, Pancakes etc.

13) Ice Creams, Bread Spreads, Butter etc.

14) Beverages (Non Alcoholic) – Juices, Smoothies, Syrups etc.

15) Baby Items – Baby Food, Diapers, Baby Wipes, Baby Soap etc.

16) Pet Supplies – Dog Food, Cat Food, Pet Toys etc.

17) Paper Goods – Napkins, Paper Tissues, Trash bags, Aluminum Foil etc.

18) Cleaning Supplies – Laundry Detergent, Dish Washer Gels, Glass

Cleaner etc.

19) Health & Beauty – Soap, Tooth Paste, Body Lotion, Perfumes etc .

20) Office Stationeries – Pens, Pencils, Notebooks, Office equipments etc.

21) Miscellaneous – Batteries, Light Bulbs, Tubes etc.

The Value Added Services may also include:

Valet Parking

Personal Assistance for carrying goods

The selected Bidder shall comply with the applicable statutory standards of the business,

prescribed by the State and Central regulatory agencies, at all times. The bidders must note

that they would be required to follow other prevalent applicable regulations of the Local,




State and Central regulatory agencies, in addition to stipulations fixed by Kannur

International Airport.

The selected Bidder shall be fully responsible for obtaining all types of permissions / licences

from the Central and State Governments, Local bodies etc for carrying out the business of

the “Project”

The selected Biddershallensure the connection with the exiting fresh water and sewerage

lines of the airport at its own cost.

The Shopping Arcadeis envisaged to provide world-class shopping experience to the

customers

Interested Bidder is free to propose services / facilities which are not covered hereinabove.




ANNEXURE – II

FINANCIAL BID

Name of Project: Request for Proposal (RFP) for Selection of an Agency for Setting up and

Operating a Shopping Arcade at Kannur International Airport.

Name of the Bidder: ____________________________

Name of Project Area Required (Sqm)

Space Rent Quoted (Rs. Per Sqm per

month)

Revenue Share % Quoted

Setting up and Operating a Shopping Arcade at Kannur International Airport.

Note: The above quoted rates are excluding all applicable taxes (including GST).

Signature: ………………………………………………..

Date: ……………………………………..